March's survey highlights sustained weakness across the US manufacturing sector, meaning that overall growth through the first quarter slowed to its lowest since late-2012. Subdued client spending patterns within the energy sector, ongoing pressure from the strong dollar, and general uncertainty about the business outlook were cited as factors weighing on new order flows in March.

Regional surveys from Richmond, New York, Philadelphia and Chicago showed sharp improvements for the month.

Economists had expected the data to show some improvement in the sector, which has been hurt by the downturn in the energy sector and the strong US dollar.

"While it is still too early to assess whether the manufacturing recovery is finally back on track, the upswing in the forward-looking indicators suggests that some further upside momentum lies ahead," wrote TD Securities' Millan Mulraine in a note.